Tab: 1. Problem File: 666706196.

xls Page 1 of 2

Lee Co. produces two joint products, BEX and ROM.

Joint production costs for June were $30,000.
During June further processing beyond the split-off point was
needed to convert the products into salable form.
June production costs after split-off were:
$35,000 for 1,600 units of BEX.
$25,000 for 800 units of ROM.
BEX sells for $50 per unit, and ROM sells for $100 per unit.
Lee uses the net realizable value method for allocating joint product costs.
For June, the joint costs allocated to product ROM were
a. $20,000 b. $16,500 c. $13,500 d. $10,000

Lee Company-Joint cost allocat Bex Rom Total

Joint Costs $ 30,000
Unit selling price $ 50.00 $ 100.00
Total Sales - in units 1,600 800
Total Revenue $ 80,000 $ 80,000
Costs after split-off
Net realizable value
Ratios
Joint cost allocation
Tab: 2. Answers File: 666706196.xls Page 2 of 2

Lee Co. produces two joint products, BEX and ROM.

Joint production costs for June were $30,000.
During June further processing beyond the split-off point was
needed to convert the products into salable form.
June production costs after split-off were:
$35,000 for 1,600 units of BEX.
$25,000 for 800 units of ROM.
BEX sells for $50 per unit, and ROM sells for $100 per unit.
Lee uses the net realizable value method for allocating joint product costs.
For June, the joint costs allocated to product ROM were
a. $20,000 b. $16,500 c. $13,500 d. $10,000

Lee Company-Joint cost allocat Bex Rom Total

Joint Costs $ 30,000
Unit selling price $ 50.00 $ 100.00
Total Sales - in units 1,600 800
Total Revenue $ 80,000 $ 80,000
Costs after split-off $ 35,000 $ 25,000
Net realizable value $ 45,000 $ 55,000
Ratios 45% 55%
Joint cost allocation $ 13,500 $ 16,500